India's economic growth rate has halved in just three years

India's economic growth rate has halved in just three years

The gross domestic product data released yesterday showed consumer demand, private investment and exports all struggling, resulting in a year-on-year growth figure that was below the 4.7 percent forecast in a Reuters poll of economists.

India was the world's fastest-growing economy until previous year, posting quarterly growth rates of as high of 9.4% in 2016.

Slowing and Steadily Losing the Race: India's GDP grew at the slowest pace in six years at 4.5% in the July-September Q2 quarter.

Manufacturing growth contracted 1 per cent as against 6.9 per cent growth last year during the same quarter, while the "agriculture, forestry and fishing" sector recorded a growth rate of 2.1 per cent as against 4.9 per cent last year.

For last over a month or so, both domestic and worldwide rating agencies had cut the gross domestic product or GDP growth forecast, ranging between 6.2 and 4.7 per cent this financial year.

Guardiola open to Manchester City contract extension
Asked if the ex-Liverpool midfielder had just handed his former club the title, Bruce said: "I don't know about that". Maybe, with the experience I have now, I would stay.

Though the GDP growth print of 4.5 per cent for the second quarter of FY20 is dire news for the Indian economy, the CSO's latest numbers are unlikely to have shock value for the markets. "International Monetary Fund has projected India's GDP growth at 6.1 per cent in FY 2019-20 and 7 per cent in FY 2020-21 in its October 2019 report on World Economic Outlook", said Chakraborty.

In October, the Reserve Bank of India cut GDP growth estimate for the year sharply down to 6.1% from 6.9% earlier after it admitted that consumer demand remained sluggish. Official statistics show that the slowest growth rate was 5.5 per cent in 2012-13. This is the lowest GDP quarter in 6 years. He said that the falling in the GDP is not surprising rather it is expected as the index of industrial production, core industries, credit growth were showing that the growth in this quarter will be slow.

Economists expect India's central bank to announce yet another rate cut on Thursday to combat a liquidity crunch caused by the collapse of India's shadow banking sector. "India Ratings and Research also revised its GDP growth forecast to 5.6% for the annual financial year for year 20". Second thing is nominal growth of GDP is 6.1 percent which can haunt India's dream to become 5 trillion dollar target in 2024-25. This also marks the sixth consecutive quarter of sagging growth. A favourable low base effect, however, would be seen third quarter onwards, which may help push the headline growth number higher.

Some economists, however, fear a contrary economic scenario in the upcoming quarters. Now the rate of expansion has slumped to just half that.

"Today's weak print was well telegraphed, and while the Reserve Bank of India did not project this kind of weakness, we do not think their view on growth trajectory will change materially", said Rahul Bajoria, senior economist with Barclays Bank Plc in Mumbai.

Related News:

Most liked

Black Friday mega deals in Meridian
However, regardless of your Black Friday shopping, there are many great cybernetic beauty deals to be made this year. On Black Friday , there's also a staging area for products such as bikes and TVs that are too big for the locker.

Oculus Rift S discounted to $349 for Black Friday
With the ongoing Black Friday VR headset and gaming deals, getting your hands on VR doesn't have to cost you a fortune. Will Black Friday 2019 last more than a single day? This bundle does not include the PlayStation VR Move controllers.

The best Dell XPS 13 Black Friday deals
The MacBook Air is still seeing some heavy reductions with $900 for the current model or $1,100 for the new 13-inch MacBook Pro. However, you will have to get up early, as the entry agreement begins at 8 a.m. on Black Friday morning.

Unai Emery axed as Arsenal boss after worst run in decades
Kroenke then confirmed that the club is searching for a new boss, stating that the process is "already underway". The Arsenal Supporters' Trust released a statement saying Emery's dismissal was "unfortunate but inevitable".

This 90% off Xbox Live Gold Black Friday deal is somehow real
The Black Friday festivities are mostly based in crowded stores, though plenty of deals can also be hunted down online. This Black Friday deal won't last forever, so don't wait! The rest of the best deals we've seen are rounded up below.

Attack by Convicted Terrorist Prompts UK to Review Sentencing
Police is searching the address of the suspect who attended an event Friday called, "Learning Together", at Fishmonger's Hall. A White House spokesman said President Donald Trump had been briefed on the attack and was monitoring the situation.

Xiaomi To Launch Mi Note 10 With 108mp Penta Camera
Mi Note 10 will be launched during Christmas 2019, but you can pre-order it on the best price on Black Friday 2019. Amazon India's MI Black Friday sale brings forward unbeatable discounts on popular MI smartphones.

Former Japanese Prime Minister Nakasone dies aged 101
He won a rare fifth year in office after leading his Liberal Democratic Party to a landslide victory in 1986 elections. Nakasone complied, but he accused Koizumi of discrimination and lack of respect for his elders.

Southern California Storm Watch: More Rain & Snow On The Way
The wintry mix will continue into Sunday morning , but as the day warms up it will turn into rain in the afternoon, Martin said. This will increase cloud cover into the northeast on Saturday afternoon heading into the evening hours.

Fired Navy Secretary Spencer criticizes Trump in SEAL's case
Spencer referred to Trump's restoration of Gallagher's rank as a "shocking and unprecedented intervention in a low-level review". Lt Portier, Lt Commander Breisch and Lt MacNeil were under scrutiny in the Gallagher affair as his superiors.

Mitchell to make Test debut for New Zealand against England
New Zealand's participant depth "is definitely the best it's every been in my career", Taylor stated. I certainly think he's got the capability to do what Colin's been able to do in recent times ".

China angry as Trump backs Hong Kong bills
Ken Woo, acting president of the Poly U student union, said the siege had changed students' perceptions of their university. Thousands in Hong Kong celebrated at a "Thanksgiving" rally on Friday after USA legislation backed the supporters.

Australia v Pakistan: David Warner, Marnus Labuschagne share record stand
Warner looked supreme, his balanced stroke play and confident run-calling clearly putting his disappointing Ashes form behind him. Shaheen Shah Afridi kicks ball over boundary rope: The Pakistani fast bowler underwent a poor day in the field in Adelaide .

Black Friday: Stream 4k/HDR with Roku devices at 50% Off
Roku has matched their awesome Black Friday deal from past year by discounting the Roku Ultra to just $49.99 (normally $100). Roku's make for a popular options thanks to their compatibility with a wide variety of streaming platforms and live TV.

Google explains Stadia 4K streaming issues
The problem? Stadia only launched on November 19, and two games that people probably bought are already being given away. Currently, there are only two on-demand games available to Stadia Pro subscribers: Destiny 2 and Samurai Showdown .